The Star (Nairobi)

10 April 2014

Kenya: New Rules to Lock Out CFSS and Sheds From Mombasa Port

THE Kenya Ports Authority has come up with new measures to restrict activities of container freight stations at the port of Mombasa. The Draft Container Freight Station Policy 2014 will see all CFS's and sheds operating inside the port relocated.

Port users and CFSs operators now have until April 22, to give recommendations on the proposals before implementation. KPA said the key objective is to decongest the port and create space for trans-shipment cargo. The move is also aimed at creating a level play ground for CFSs operating at the port city.

KPA chairman Danston Mungatana told a press conference in Mombasa yesterday conference room yesterday that the authority will not renew leases of CFSs and sheds located in the premises.

Currently, two major CFSs and sheds are operating inside the port which includes the Makupa CFS. Mitchell Cotts and Portside freight terminals Ltd both have sheds inside the port where all have been operating on five-year renewable leases.

About ten other CFSs have been working with the authority as nominated off dock facilities where cargo is transferred to once it lands at the port.

"KPA will like to see activities of CFSs going on but in a regulated manner. We have decided to create a policy to make efficient operations and a level playing field to help decongest the port. The new policy will enable the authority effectively manage CFSs," said Mungatana.

KPA introduced the CFS concept in 2007 to help address the capacity constraints at the port.

" For the last ten years or so, capacity constraints at the Port of Mombasa have been a major hurdle in port operations. Cargo imports especially cars and containers have always surpassed yard holding capacity against a backdrop of poor cargo off take. The authority introduced CFSs but now we have to regulate them," said Mungatana.

He said KPA has embarked on an expansion and modernisation programme to increase cargo handling capacity and enhance efficiency.

CFSs will be strictly nominated to handle specific cargo and will have to comply to the categories of cargo they have been nominated for.

The nominations will be done through government directives, shipper-client nominations and KPA nominations.

The policy will also enforce the 24/7 operation schedule in the CFSs.

The move has been supported by Association of Importers of Motor vehicles in Kenya which had previously protested against private CFSs operating in the port.

According to association chairman Peter Mambembe, the move was creating unfair competition to other investors.

"The move was creating unfair competition which was pushing others out of business," Mambembe said.

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